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Home owners can avail subsidy up to 40% for installation of Solar Project at their Residence

Residential on-grid solar projects up to 3 KW will qualify for a subsidy of 40%. For rooftop solar installations above 3 KW, and up to 10 KW will get a subsidy of 40% for the first 3 KW and 20% for the remaining capacity, and for installations above 10 kW, it is 40% for the first 3 KW and 20% for the remaining 7 KW. However, there’s no subsidy beyond 10 KW capacity.

Rajasthan Residential Solar subsidy Scheme:- Rajasthan has been allocated total capacity of 55 MW under the scheme by MNRE. The capacity is divided as JVVNL:- 25 MW, AVVNL- 15 MW and JdVVNL:- 15 MW. There will be around 9000+ consumers going to get the benefit of subsidy scheme. There are around 195+ vendors participated in the tender to get empanelled under the scheme. List of empanelled vendors could be downloaded from the link.


Rate contract/ Letter of Award :- The project cost for various capacities are based on the Rate contract by empanelled vendors with implementing agency ( #Discoms). AVVNL is implementing agency for Rajasthan Rooftop Solar Subsidy Scheme, which will issue the LOA to the technically qualified vendors.


Capacity wise project cost :- The project cost for various capacities are as below:-

The above project cost is excluding the following:-

  • GST at 13.8% ( 12% for 70% of cost & 18% for 30% of the cost)

  • High Rise Structure other than as specified in tender

  • Any Customization required by beneficiary not included in the tender specification

  • Meter Cost and Discom charges

  • Any other fee; liasioning etc as mutually agreed between vendor & beneficiary for the services not the part of the tender specification.

SUBSIDY & PROJECT COST BASIC CALCULATION:-

Subsidy or Central Financial Assistance (CFA) will given as percentage of benchmark cost or cost discovered through competitive process, whichever is lower). For example, at the time of tendering the Benchmark price for project capacity of >3 KW -10 KW was 40,991/ KWp and the L1 rates for JVVNL & AVVNL/JdVVL are 40,991/KW and 41990/KW respectively. Hence, the subsidy will be given on 40,991/KW for all the three Discoms, Hence, the simple Subsidy Calculation would be:-

40% up to 3 KW, which means for the slab up to 3KW the subsidy per KW= Rs.16,396.4

20% above 3 KW & up to 10 KW; for remaining capacity, the subsidy per KW= 8198.2


Simply speaking; For the project of 3 KW; subsidy would be = Rs. 16,396.4 X3 = Rs 49189.2/-

For any project above 3 KW, the subsidy would be= (49189.2 )+ (Project Size- 3 ) X 8198.2

Hence for the project capacity of 6 KW; total Subsidy customer will get would be Rs. 49189.2 + (6-3) X 8198.2 = 49189.2 + 24594.6 = Rs. 73783.8 /-


Total Project Cost :- For a project of 6 KW in Ajmer Discom; the cost would be

Project Cost Excluding GST= 6X 41990= Rs. 251940/-

Project Cost Including GST at 13.8% = 286707.72


Additional cost would be Solar Meter/Net-Meter, Discom Charges, High Rise Structure or any other customization or fees mutually agreed between beneficiary & vendor.


www.rear.org.in, info@rear.org.in 9214444400/ 8299519741



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Disclaimer:- The article is informational in nature and based on the information from various sources. Hence, please re-check the data and resources from the implementing agency or other sources.

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